Australia has dodged a hit from President Donald Trump’s latest tariff crackdown, with the country not named among those facing higher ‘reciprocal’ tariffs under his executive order.
That means Australia will continue to pay the standard 10 per cent rate, which was imposed in April.
There were fears that this could grow to 15 to 20 per cent, but the White House says that is not immediately changing.
But Labor MP Ed Husic has warned that if the Trump Administration does hit Australia with higher tariffs, it would send a troubling message.
‘It’s not an act of a friend at all. It’s not based on fact. It’s not an act of a country that wants others to engage meaningfully on the issues that it’s concerned about.
‘I understand there’ll be elements of the Trump Administration that believe that they have copped a raw deal from other nations. They’re not copping it from Australia, which has stood by their side for decades in some of the toughest circumstances as well.
‘You just don’t treat us like this. I don’t think that’s a way you build stronger friendships when you need them at a time where the global environment is so hotly contested.’
Because Trump’s 10 per cent base tariff rate applies to countries lacking a trade deal, it highlights the need for Albanese and Trump to meet and negotiate.
While Australia has dodged another tariff hit – other countries were not so lucky.
Trump signed an executive order increasing tariffs on Canadian goods to 35 per cent from 25 per cent, the White House said.
The new rates goes into effect on August 1.
‘In response to Canada’s continued inaction and retaliation, President Trump has found it necessary to increase the tariff on Canada from 25 per cent to 35 per cent to effectively address the existing emergency,’ the White House said.
Goods transshipped to evade the 35 per cent tariff on Canada will be subject, instead, to a transshipment tariff of 40 per cent, the White House said.
Meanwhile India has been hit with a 25 per cent tariff.
Trump said he had agreed with Mexican President Claudia Sheinbaum to extend an existing trade deal with Mexico for 90 days and continue talks over that period with the goal of signing a new deal.
‘Mexico will continue to pay a 25% Fentanyl Tariff, 25% Tariff on Cars, and 50% Tariff on Steel, Aluminum, and Copper. Additionally, Mexico has agreed to immediately terminate its Non Tariff Trade Barriers, of which there were many,’ Trump said.
